U.S. to file trade case against China

Business Week Onlinehas reported that the Bush administration today said it is filing a trade case against China before the World Trade Organization (WTO) in a dispute involving auto parts from the U.S. and other nations.

According to the report, the 25-nation European Union (EU) has joined in the complaint that alleges that China is imposing high taxes on imported auto parts in violation of pledges it made when China joined the WTO in 2001.

Filing a complaint with the WTO initiates a 90-day consultation period in which both sides try to work out their differences. If negotiations fail, the U.S. and the EU then will have the right to pursue a trade case that could result in penalty tariffs being levied against Chinese products.

More information can be found here.